The general insurance industry posted a modest ~6% GDPI growth in Q2FY26, owing to: 1) continued slowdown in new vehicle sales till the last week of Sep-25 resulting in muted growth in Motor OD (+5.6% YoY); 2) absence of a price hike causing subdued growth in Motor TP premiums (+7.4% YoY); 3) implementation of 1/n regulation, which dampened growth in the Retail Health segment (+7.4% YoY); 4) heightened pricing competition in the Group Health segment (+7.6% YoY) due to EoM guideline targets; and 5) while the 1/n regulation constrained growth in commercial lines, pricing discipline in the Fire segment (+27% YoY) supported overall ~16% rise in the commercial lines business. In Q2FY26, ICICIGI logged a marginal GDPI decline of 1.9%, whereas GODIGIT achieved a robust 16.7% YoY growth. Star Health reported a muted ~3% GDPI increase, constrained by the 1/n regulation and contraction in the Group business. Looking ahead, the general insurance industry is expected to witness growth revival, driven by multiple factors: i) recovery in new vehicle demand supporting Motor segment growth; ii) improved affordability in Health Insurance products following GST rate exemptions, thus bolstering retail Health growth; iii) normalization of the impact of 1/n regulation; iv) likely Motor TP tariff hike in Q1FY27; and v) sustained pricing discipline in the Fire segment. With the overall outlook turning favorable, the industry is poised for growth recovery in H2, backed by stronger demand following the GST rate reductions.

Growth moderation in Motor and Health segments drive modest growth in Q2
The industry saw a modest ~6% GDPI growth in Q2FY26, mainly reflecting the benign performance in the Motor/Health segments, partially offset by robust growth in Personal Accident/Fire segments. Growth in the Motor segment was constrained by a slowdown in new vehicle sales; however, it is expected to improve in H2, supported by demand recovery following GST rate reductions. The Retail Health segment recorded modest growth during the quarter, impacted by the implementation of 1/n regulation, while the Group Health segment faced heightened pricing competition, partially mitigated by strong traction in the mass government health segment. Pricing discipline in the Fire segment continued to drive a strong performance, helping deliver 27% GDPI growth in Q2FY26.